MEPs to vote on tougher greenhouse gas emission curbs
Plans to strengthen greenhouse gas emission curbs via the EU carbon market (EU Emissions Trading System) will be put to a vote on Wednesday. To raise the price of carbon, MEPs propose reducing the number of “carbon credits” (emission allowances) to be auctioned by 2.4% each year, and doubling the capacity of the 2019 market stability reserve (MSR) to absorb the excess of allowances on the market.
In their amendments, MEPs advocate increasing the so-called “linear reduction factor” - the yearly reduction of credits to be auctioned, in order to deliver on the carbon curbs - by 2.4%, as against the 2.2% proposed by the European Commission.
MEPs also want to boost the MSR’s capacity to mop up excess credits on the market. When triggered, it would absorb up to 24% of excess credits in each auctioning year, for the first four years - double its current capacity. MEPs also agree that 800 million allowances should be removed from the MSR as of 1 January 2021.
Procedure: ordinary legislative procedure, first reading
Vote: Wednesday, 15 February